PwC's Energy Visions Forum and report discuss Canada's presence on the
global energy stage
CALGARY, May 29, 2013 /CNW/ - With a vast reserve base, advances in
technology, and Canada's bitumen production estimated to reach nearly
5.7 million barrels a day by 2025, Canada has the potential to attain
energy superpower status, according to the latest PwC Canada Energy
Report - Unlocking Canada's oil and gas industry - is Canada becoming an energy
An energy superpower can be defined by a country's ability to excel in
various areas. The report focuses on price realization, external
geopolitical influence, efficient domestic policy environment and
"Canada ranks third in global reserves in terms of strength in liquids.
We also have the technological capacity to extract conventional and
unconventional oil and gas, but having the resources and the ability to
use them is only part of the superpower equation," says Reynold Tetzlaff, PwC Canada's National Energy Leader. "We need access to the global market and our ability to use our
petro-strength to make an impression on global hydrocarbon markets is
Regarding access to global markets, Canadian producers are unable to
secure optimum prices for their output, the report notes. "Canada could
become a major international crude player, but it needs to increase
capacity to move synthetic crude and bitumen to the west coast for
exports to Asia and a west-to-east pipeline corridor to facilitate
exports to Europe and other countries," says Tetzlaff.
In the report, PwC references a study, Energy 2020: Independence Day by Citi Research, which indicates that once pipelines to the Pacific
are set, Canadian producers should become significant suppliers of
crude oil to the fastest growing market in the world - the Pacific
Making a global impression
Robert Johnston, Director of Eurasia Group's Global Energy and Natural
Resources practice, believes Canada has a level of influence among
other producing and exporting nations.
"Canada is a geopolitical middle power, which should constrain the
impact of our emerging energy superpower status relative to countries
like China, the U.S. and Russia," says Johnston. "Similar to our middle
power peers, Brazil, Australia and Norway, we should be able to link
energy trade and investments with other aspects of our economic
Michael Levi, a David M. Rubsenstein Senior Fellow for Energy and the
Environment at the Council on Foreign Relations, adds "There are really
only two levers Canada could use on the international stage. The first
ties opportunities to invest in Canada's resources to other countries'
behavior. The second looks at making a deliberate decision to tie
Canadian exports of Liquefied Natural Gas (LNG) to North American gas
prices, which would steer the world towards a more market-based gas
Working things out at home
According to the report, the underlying Canadian structure - provinces
control resource ownership, while the federal government holds
regulator levers for exports - could be seen as one of the potential
hurdles to Canada achieving energy super power status.
"The struggle to achieve consensus on how to capitalize on our strong
Canadian resource base amongst the provinces is costing Canada billions
of dollars," says Tetzlaff. "While natural resources are under
provincial control, oil and gas is a national matter. We need all
regions to work together to build our energy presence on the world
stage and as a nation decide where we want to stand."
The report "Unlocking Canada's oil and gas industry - is Canada becoming an energy
superpower?" was released today by PwC at the 4th Annual Energy Visions Business Forum in Calgary, Alberta. PwC's Energy Visions program is a series of
publications and events that provide context around issues affecting
the oil and gas sector. For more information and a copy of the report,
please visit www.pwc.com/ca/energyvisions. The copy of the report is also available from the media contacts.
Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at www.facebook.com/pwccanada.
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